What is CARM? And are you ready?

CARM is a large multi-year project that began in 2016 with the implementation of the Accounts Receivable Ledger (ARL).

Once completely implemented CARM is intended to:

Simplify the overall importing process

Provide a modern interface for importing into Canada

Give importers self-service access to their own information

Improve consistency in trade rules and decisions

Strengthen compliance verification and fraud detection

What changes under CARM?

The next phase of CARM will be the client portal. The initial version (Fall 2020) will offer basic functionality relating to account setup. Once the portal is fully operational (Spring 2021) importers will have access to the following:

Accounting and payment of any applicable fees (i.e., duties/taxes) on imported goods

Electronic submission of corrections and adjustments

Available option to delegate third party service providers (e.g., customs brokers) to manage their import and clearance processes

Applying for classification rulings

The biggest change for importers will be the requirement to post their own Release Prior to Payment (RPP) liability bond.

How does RPP impact you?

CARM will focus on shifting liability from the Customs Broker to the Importer. The impact will be as follows:

All importers will be required to post their own security to participate in the RPP program.

A commercial shipment will not be released prior to payment unless the importer has posted a surety or cash bond.

CBSA recommends that the amount of RPP security an importer (resident or non-resident) posts should be based on their highest historic monthly accounts receivable over a 12 month period, inclusive of duties, taxes (GST), fees, and penalties.

It is the importer’s responsibility to manage and maintain the appropriate amount of RPP security relative to their accounts receivable, inclusive of duties, taxes (GST), fees, and penalties.

An importer will have the flexibility to make interim payment to reduce their RPP security utilization, and raise or lower their RPP security to account for seasonality or other fluctuations in their business.

CARM Implementation Phases

Spring 2020: Complete movement of the existing ARL system from its existing data centre configuration to the cloud, with no changes in functionality for external users.

Fall 2020: The first release of new functionality under CARM, will provide trade chain partners with new tools for managing their accounts with CBSA, including an online client self-service portal, and online invoicing and payments.

Spring 2021: The second release will introduce additional functionality for trade chain partners such as registration, enrolment and electronic declarations with versioning.

How is my shipment released from customs?

The CARM Portal is not replacing the Single Window system. Release requests will still be sent to CBSA through Single Window and the Integrated Import Declaration (B3 data) which ultimately triggers the release of your goods. Once the Spring 2021 release is complete the current Customs Automated Data Exchange (CADEX) system will be decommissioned.

COVID-19 is a global challenge. Keeping our supply chains moving is important for maintaining the health and wellbeing of citizens and businesses. While the Canada - U.S. border is now closed to non-essential traffic, it is still open for trade and commerce. We are committed to doing our part for global supply chains.

We are protecting the health and safety of our employees. They are working from home, except for critical functions that require certain equipment or managing paper/courier flow. In those cases we are following social distancing guidelines.

We are open and available to assist you, and key players in your supply chains. Our dedicated staff are available 24/7 and our brokerage and logistics experts are available to help you make adjustments to your supply chain, if necessary.

We encourage you to check out the government programs available to families, businesses, exporters and importers. And, while respecting the need for social distancing we encourage everyone, including our staff, to reach out and remain connected to family, friends, colleagues and customers.